The unit product cost of Product A4 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:
A)$1,019.01 per unit
B)$1,307.76 per unit
C)$702.40 per unit
D)$979.95 per unit

Question

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total overhead ÷ Total direct labor-hours
= $1,120,365 ÷ 8,300 DLHs = $134.98 per DLH (rounded)
Computation of traditional unit product cost: 11ea7998_5ebb_62e7_911b_a50c94cd8a5e_TB2627_00_TB2627_00

The Unit Product Cost of Product A4 Under the Company's